HOA Assessment
I live in a HOA townhome community. The HOA has mismanaged funds for years and our reserves our depleted to extremely low levels. Our roofs are beginning to leak, and our HOA is supposed to be responsible for the roofs and exterior for the buildings. They are looking at current estimates of $1.5 – $2 million for replacement, and there are no reserves to pay for it. The HOA wants us members to pay for our new roofs at around $10k or more per owner. Are they able to due this? Is it worth suing if this were to occur? I wish community members would get involved we are all get screwed by our board. I just want to sell but the rental market isn’t going to make that feasible. If I don’t sell before I’m assessed I’ll have to pay the assessment which I don’t have the money for before I sell I assume. Either way it won’t be favorable for a buyer.
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Rick,
Unfortunately your community is like many more that implemented the hide your head in the sand approach to long term maintenance reserve fund and simply planned on special assessment to deal with any issue when it came up, Check the language in your CC&R’s relative to special assessments and the association must comply with those requirements. Special assessments are perfectly legal, however if money was raised to pay for this type of eventuality and was mis-manager or embezzled you have real cause for legal action. The association has a fiduciary responsibility to manage the assets of the association reasonably if they do not they could be held liable for their actions in court. Failure to raise money is not mismanagement, its stupid but stupid is not illegal in Arizona .
Dennis
Dennis